Green Building

Patience and real estate: Allowing time for the right installations

Fri, 08/10/2012 - 16:33

Though the real estate market has been on quite the rollercoaster ride over the past several years, due in part to the global financial crisis that hit all sectors of the economy, projects that took a long time to complete are finally coming to fruition for the people that bankrolled the developments.
Firms that invested big money into apartment buildings, like those complete with central air conditioning, modern fixtures and radiant heating systems, are beginning to see their gambles pay off.
The New York Times reported that many of the buildings in New York City that remained vacant during the worst of the financial crisis are now being sold, and tenants are lining up to secure the modern apartments that lay inside.
"It is a very powerful moment in new development right now," Kelly Mack, president of the Corcoran Sunshine Marketing Group, told the Times. "Developers are seeing a very strong opening in the market to really push their projects forward. These two years were really worth the wait."
Since these buildings contain the products that developers knew would take off, before the market went sour, the availability of those residences is beginning to wane due to an influx of ready capital and increased demand.
"There is a lot more at-risk money required today," Ziel Feldman, an analyst with HFZ Capital Group, told the Times. "That is one reason why the inventory is as low as I have seen it since the 1980s."
The inclusion of radiant heating systems in these buildings increases the value of the listings, and in the current sellers' market this is a bonus for the developers who had this insight in the first place.